Archer Announces Third Quarter 2024 Results, Demonstrating Manufacturing, Certification and Commercial Launch Momentum
Archer announced its Q3 2024 results, highlighting significant progress in manufacturing, certification, and commercial launch efforts. The company is nearing completion of its high-volume manufacturing facility, set to produce piloted, type-design aircraft by early 2025. Archer is also advancing through Phase 4 of the FAA's type certification process. The company has established a consortium with ADIO to launch air taxi services in the UAE by Q4 2025 and signed a $500M aircraft order agreement with Japan Airlines and Sumitomo 's joint venture, Soracle, increasing its indicative order book to $6B+. Archer ended Q3 with $501.7M in cash and cash equivalents, maintaining a strong liquidity position. However, the company reported a net loss of $115.3M for the quarter. Archer is seeking shareholder approval for up to $400M of additional capital from Stellantis to scale manufacturing. The company projects Q4 2024 non-GAAP total operating expenses between $95M and $110M.
Archer ha annunciato i risultati del terzo trimestre 2024, evidenziando progressi significativi nella produzione, certificazione e lancio commerciale. L'azienda è vicina al completamento del suo impianto di produzione ad alto volume, progettato per produrre aerei con pilota e design di tipo entro l'inizio del 2025. Archer sta anche avanzando nella Fase 4 del processo di certificazione di tipo dell'FAA. La società ha costituito un consorzio con ADIO per lanciare servizi di taxi aerei negli Emirati Arabi Uniti entro il quarto trimestre del 2025 e ha firmato un accordo per un ordine di aerei da 500 milioni di dollari con Japan Airlines e la joint venture di Sumitomo, Soracle, aumentando il suo portafoglio di ordini indicativi a oltre 6 miliardi di dollari. Archer ha chiuso il terzo trimestre con 501,7 milioni di dollari in contante e equivalenti, mantenendo una solida posizione di liquidità. Tuttavia, l'azienda ha riportato una perdita netta di 115,3 milioni di dollari per il trimestre. Archer sta cercando l'approvazione degli azionisti per un capitale aggiuntivo fino a 400 milioni di dollari da Stellantis per aumentare la produzione. La società prevede che le spese operative totali non-GAAP del quarto trimestre 2024 siano tra 95 milioni e 110 milioni di dollari.
Archer anunció sus resultados del tercer trimestre de 2024, destacando avances significativos en la fabricación, certificación y lanzamiento comercial. La empresa está cerca de completar su instalación de fabricación de alto volumen, que producirá aviones pilotados y de diseño tipo a principios de 2025. Archer también está avanzando en la Fase 4 del proceso de certificación de tipo de la FAA. La compañía ha establecido un consorcio con ADIO para lanzar servicios de taxi aéreo en los EAU para el cuarto trimestre de 2025 y firmó un acuerdo de pedido de aviones por 500 millones de dólares con Japan Airlines y la empresa conjunta de Sumitomo, Soracle, aumentando su libro de pedidos indicativos a más de 6 mil millones de dólares. Archer finalizó el tercer trimestre con 501,7 millones de dólares en efectivo y equivalentes, manteniendo una sólida posición de liquidez. Sin embargo, la compañía reportó una pérdida neta de 115,3 millones de dólares para el trimestre. Archer está buscando la aprobación de los accionistas para obtener hasta 400 millones de dólares de capital adicional de Stellantis para escalar la producción. La compañía proyecta que los gastos operativos totales no-GAAP del cuarto trimestre de 2024 oscilarán entre 95 millones y 110 millones de dólares.
아처는 2024년 3분기 실적을 발표하며 제조, 인증 및 상업적 출시가 크게 진전되었다고 강조했습니다. 이 회사는 2025년 초까지 조종사 항공기 및 형식 설계를 생산할 고용량 제조 시설의 완료를 앞두고 있습니다. 아처는 또한 FAA의 형식 인증 프로세스의 4단계로 진행 중입니다. 이 회사는 ADIO와 협업하여 2025년 4분기까지 UAE에서 에어 택시 서비스를 출시할 계획이며, 일본 항공사와 스미토모의 합작회사인 소라클과 함께 5억 달러 항공기 주문 계약을 체결하여 예비 주문서 총액을 60억 달러 이상으로 증가시켰습니다. 아처는 3분기를 5억 1700만 달러의 현금 및 현금 equivalents로 마감하며 강력한 유동성 위치를 유지했습니다. 그러나 회사는 이번 분기에 1억 1530만 달러의 순손실을 보고했습니다. 아처는 Stellantis로부터 추가 자본 4억 달러를 확보하기 위해 주주 승인을 요청하고 있습니다. 회사는 2024년 4분기 비-GAAP 총 운영 비용이 9500만 달러에서 1억 1000만 달러 사이가 될 것으로 예상합니다.
Archer a annoncé ses résultats du troisième trimestre 2024, mettant en avant des progrès significatifs dans la fabrication, la certification et les efforts de lancement commercial. L'entreprise est proche d'achever son installation de production à haut volume, qui doit produire des avions pilotés et de conception type d'ici début 2025. Archer avance également dans la phase 4 du processus de certification de type de la FAA. La société a établi un consortium avec l'ADIO pour lancer des services de taxi aérien aux Émirats Arabes Unis d'ici le quatrième trimestre 2025 et a signé un accord de commande de 500 millions de dollars avec Japan Airlines et la joint-venture de Sumitomo, Soracle, portant son carnet de commandes indicatif à plus de 6 milliards de dollars. Archer a clôturé le troisième trimestre avec 501,7 millions de dollars en liquidités et équivalents, maintenant une solide position de liquidité. Cependant, l'entreprise a enregistré une perte nette de 115,3 millions de dollars pour le trimestre. Archer cherche l'approbation des actionnaires pour obtenir jusqu'à 400 millions de dollars de capital supplémentaire de Stellantis afin de développer la production. La société projette des dépenses d'exploitation totales non-GAAP pour le quatrième trimestre 2024 entre 95 millions et 110 millions de dollars.
Archer gab seine Ergebnisse für das dritte Quartal 2024 bekannt und hob dabei bedeutende Fortschritte in der Produktion, Zertifizierung und kommerziellen Einführung hervor. Das Unternehmen steht kurz vor dem Abschluss seiner Hochlauf-Fertigungseinrichtung, die bis Anfang 2025 pilotierte, typisierte Flugzeuge herstellen soll. Archer durchläuft zudem die Phase 4 des Typenzertifizierungsprozesses der FAA. Das Unternehmen hat ein Konsortium mit ADIO gegründet, um bis zum vierten Quartal 2025 Lufttaxidienste in den VAE einzuführen und hat eine Vereinbarung über einen Flugzeugauftrag in Höhe von 500 Millionen US-Dollar mit Japan Airlines und dem Joint Venture von Sumitomo, Soracle, unterzeichnet, was den indikativen Auftragsbestand auf über 6 Milliarden US-Dollar erhöht. Archer beendete das dritte Quartal mit 501,7 Millionen US-Dollar in Bargeld und liquiden Mitteln und bleibt in einer starken Liquiditätsposition. Allerdings berichtete das Unternehmen für das Quartal einen Nettoverlust von 115,3 Millionen US-Dollar. Archer strebt die Genehmigung der Aktionäre für bis zu 400 Millionen US-Dollar zusätzliches Kapital von Stellantis an, um die Produktion zu skalieren. Das Unternehmen prognostiziert für das vierte Quartal 2024, dass die Gesamtkosten für den Betrieb ohne GAAP zwischen 95 Millionen und 110 Millionen US-Dollar liegen werden.
- Completion of high-volume manufacturing facility on time and on budget ($65M).
- Advancement to Phase 4 of FAA's type certification process.
- Consortium with ADIO to launch air taxi services in UAE by Q4 2025.
- Signed $500M aircraft order agreement with Japan Airlines and Sumitomo's joint venture, Soracle.
- Indicative order book increased to $6B+.
- Strong liquidity position with $501.7M in cash and cash equivalents.
- Reported net loss of $115.3M for Q3 2024.
- Manufacturing facility set for completion in the coming weeks, focus going into 2025 is on building piloted, type-design aircraft for use in testing and early commercial deployment
- Nearing completion of Phase 3 of the FAA’s type certification process while continuing to rapidly advance Phase 4, the final phase to secure type certification
-
Established a consortium led by the Abu Dhabi Investment Office (ADIO) to launch commercial air taxi services in the
UAE as early as Q4’25 -
Signed partnership with Japan Airlines and Sumitomo Corporation’s joint venture, Soracle, with a planned order of up to
$500M $6B +*
Recent photo of Archer’s manufacturing facility in
Commenting on third quarter 2024 results, Adam Goldstein, Archer’s founder and CEO said:
“Over the past six years, we have established the foundation to allow Archer to seamlessly transition from concept to commercialization. As we enter the final stretch of bringing Midnight to market, our strategy is paying off in the form of strong certification progress, the eVTOL industry's most mature scalable manufacturing facility in the
Webcast & Conference Call Details
Archer will be conducting its earnings conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) today. You can access a live webcast on our investor relations website at investors.archer.com or the conference call by dialing 404-975-4839 (domestic) or +1 833-470-1428 (international) and entering the access code 286379.
A replay of the webcast will be available on our investor relations website. In addition, a telephonic replay of the conference call will be accessible for one week following the call by dialing 866-813-9403 (domestic) or +44 204-525-0658 (international), and entering the access code 205749.
Third Quarter Highlights
Building Production Aircraft
With its high-volume manufacturing facility set for completion in the coming weeks, Archer’s focus going into 2025 is on building piloted, type-design aircraft for use in testing and early commercial deployment. Archer plans to load in manufacturing equipment over the coming months so that production can begin at this facility in early 2025 with the goal to ramp to a rate of two aircraft per month by the end of the year. This facility was completed on time and on budget—in just over 18 months at a cost of
Certification Momentum
Since the FAA finalized Midnight’s airworthiness criteria in May, Archer is now nearing completion of Phase 3 of the FAA’s 4-phase type certification process while continuing to rapidly advance through Phase 4, the final phase to secure type certification.
Additionally, the FAA has now released the powered-lift Special Federal Aviation Regulation (SFAR), putting the key piece of the regulatory puzzle in place to allow Archer and the rest of the industry to firm up plans for safely commercializing eVTOL in the
Commercial Launch Progress
Liquidity Position
Archer completed the quarter with over
*Orders under the order book remain conditional, subject to the execution of further definitive agreements with each customer and the satisfaction of certain conditions. Order values represent the Company’s estimate based on an indicative
**The key terms of the contract manufacturing relationship with Stellantis are based on a memorandum of understanding that contemplates the parties to enter into future definitive agreements related thereto.
Third Quarter 2024 Financial Results
|
Q3 2024
|
Q3 20241
|
|||
Total Operating Expenses |
$ |
122.1M |
$ |
96.8M |
|
Net Loss |
$ |
(115.3M) |
NA |
||
Adjusted EBITDA |
|
NA |
$ |
(93.5M) |
|
Cash and Cash Equivalents |
$ |
501.7M |
NA |
||
- A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is provided below in the section titled “Reconciliation of Selected GAAP To Non-GAAP Results for Q3 2024.”
Fourth Quarter 2024 Financial Estimates
Archer’s financial estimates for fourth quarter of 2024 are as follows:
-
Non-GAAP total operating expenses of
$95M $110M
We have not reconciled our non-GAAP total operating expense estimates because certain items that impact non-GAAP total operating expense are uncertain or out of our control and cannot be reasonably predicted. In particular, stock-based compensation expense is impacted by the future fair market value of our common stock and other factors, all of which are difficult to predict, subject to frequent change, or not within our control. The actual amount of these expenses during 2024 will have a significant impact on our future GAAP financials. Accordingly, a reconciliation of non-GAAP total operating expenses is not available without unreasonable effort.
About Archer
Archer is a leader in the electrification of aviation. We are designing and developing the key enabling technologies and aircraft that are necessary to power the next great transportation revolution. Our goal is for our proprietary technology to deliver unprecedented connectivity to the people and places across the most congested cities in the world.
To learn more, visit www.archer.com.
Source: Archer
Text: ArcherIR
Forward-Looking Statements
This press release contains forward-looking statements regarding Archer’s future business plans and expectations, including statements regarding our expected financial results for the fourth quarter of 2024, our business strategy and plans, aircraft performance, the design and target specifications of our aircraft, the pace at which we intend to design, develop, certify, conduct test flights, manufacture and commercialize our planned eVTOL aircraft, business opportunities, the production timeline, ramp-up and production volume of our manufacturing facilities, indicative orders for aircraft in agreements with third-parties, and our ability to enter into definitive agreements with Stellantis relating to the contract manufacturing relationship and the terms of any such agreements. In addition, this press release refers to signed agreements with third parties on certain key terms which are conditioned on the future execution by the parties of additional binding definitive agreements incorporating those terms, which definitive agreements may not be completed or may contain different terms. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors. The risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in our filings with the Securities and Exchange Commission (SEC), including our most recent Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q, which are or will be available on our investor relations website at investors.archer.com and on the SEC website at www.sec.gov. In addition, please note that any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of the date of this press release. We undertake no obligation to update these statements as a result of new information or future events.
Reconciliation of Selected GAAP To Non-GAAP Results for Q3 2024
Reconciliation of Total Operating Expenses (in millions; unaudited): A reconciliation of total operating expenses to non-GAAP total operating expenses for the three months ended September 30, 2024 is set forth below.
|
Three Months Ended September 30, 2024 |
|
Total operating expenses |
$ |
122.1 |
Adjusted to exclude the following: |
|
|
Stellantis warrant expense (1) |
|
(2.0) |
Stock-based compensation (2) |
|
(21.4) |
Technology and dispute resolution agreements (3) |
|
(1.7) |
General and administrative warrant expense |
|
(0.2) |
Non-GAAP total operating expenses |
$ |
96.8 |
(1) |
Amount includes non-cash warrant costs, classified as research and development expenses, for the warrants issued to Stellantis in connection with certain services they are providing to the Company. |
(2) |
Amounts include stock-based compensation for options and restricted stock units issued to both employees and non-employees, including the grants issued to our founders in connection with the closing of the business combination. |
(3) |
Amounts reflect charges related to the technology and dispute resolution agreements (the “Boeing Wisk Agreements”) reached on August 10, 2023, between us, Wisk Aero LLC and the Boeing Company. |
Reconciliation of Adjusted EBITDA (in millions; unaudited): A reconciliation of net loss to Adjusted EBITDA for the three months ended September 30, 2024 is set forth below.
|
Three Months Ended September 30, 2024 |
|
Net loss |
$ |
(115.3) |
Adjusted to exclude the following: |
|
|
Other (income) expense, net (1) |
|
(1.4) |
Interest income, net |
|
(5.5) |
Income tax expense |
|
0.1 |
Depreciation and amortization expense |
|
3.3 |
Stellantis warrant expense (2) |
|
2.0 |
Stock-based compensation (3) |
|
21.4 |
Technology and dispute resolution agreements (4) |
|
1.7 |
General and administrative warrant expense |
|
0.2 |
Adjusted EBITDA |
$ |
(93.5) |
(1) |
Amount includes changes in fair value of the public and private warrants, which are classified as warrant liabilities, and gain on share issuance. |
(2) |
Amount includes non-cash warrant costs, classified as research and development expenses, for the warrants issued to Stellantis in connection with certain services they are providing to the Company. |
(3) |
Amount includes stock-based compensation for options and restricted stock units issued to both employees and non-employees, including the grants issued to our founders in connection with the closing of the business combination. |
(4) |
Amounts reflect charges relating to the Boeing Wisk Agreements. |
Non-GAAP Financial Measures
To supplement our condensed consolidated financial results prepared in accordance with GAAP, we use a number of non-GAAP financial measures to help us in analyzing and assessing our overall business performance, for making operating decisions and for forecasting and planning future periods. We consider the use of non-GAAP financial measures helpful in assessing our current financial performance, ongoing operations and prospects for the future as well as understanding financial and business trends relating to our financial condition and results of operations.
While we use non-GAAP financial measures as a tool to enhance our understanding of certain aspects of our financial performance and to provide incremental insight into the underlying factors and trends affecting our performance, we do not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial measures. Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides useful supplemental data that, while not a substitute for GAAP financial measures, can offer insight in the review of our financial and operational performance and enables investors to more fully understand trends in our current and future performance.
In assessing our business during the quarter ended September 30, 2024, we excluded items in the following general categories from one or more of our non-GAAP financial measures, certain of which are described below:
Stock-Based Compensation Expense: We believe that providing non-GAAP measures excluding stock-based compensation expense, in addition to the GAAP measures, allows for better comparability of our financial results from period to period. We prepare and maintain our budgets and forecasts for future periods on a basis consistent with this non-GAAP financial measure. Further, companies use a variety of types of equity awards as well as a variety of methodologies, assumptions and estimates to determine stock-based compensation expense. We believe that excluding stock-based compensation expenses enhances our ability and the ability of investors to understand the impact of non-cash stock-based compensation on our operating results and to compare our results against the results of other companies.
Warrant Expense and Gains or Losses from Revaluation of Warrants: Expense from our common stock warrants issued to Stellantis and vendors, which is recurring (but non-cash) and gains or losses from change in fair value of public and private warrants from revaluation will be reflected in our financial results for the foreseeable future. We exclude warrant expense and gains or losses from change in fair value for similar reasons to our stock-based compensation expense.
Technology and Dispute Resolution Agreements: Amounts reflect charges relating to the Boeing Wisk Agreements.
Each of the non-GAAP financial measures presented in this release should not be considered in isolation from, or as a substitute for, a measure of financial performance prepared in accordance with GAAP and are presented for supplemental informational purposes only. Further, investors are cautioned that there are inherent limitations associated with the use of each of these non-GAAP financial measures as an analytical tool. In particular, these non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measures reflect the exclusion of items that are recurring and may be reflected in our financial results for the foreseeable future. In addition, the non-GAAP measures we use may be different from non-GAAP measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information in the reconciliation included in this release regarding the GAAP amounts excluded from the non-GAAP financial measures. In addition, as noted above, we evaluate the non-GAAP financial measures together with the most directly comparable GAAP financial information. Investors are encouraged to review the reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures included in this release.
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Source: Archer Aviation
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